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    APJRBM Volume 1, Issue 2 (November, 2010) ISSN 2229-4104

    Sri Krishna International Research & Educational Consortium

    http://www.skirec.com

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    ANALYSING THE FEASIBILITY OF GREEN MARKETING IN SMALL &

    MEDIUM SCALE MANUFACTURERS

    Dr. M N Welling

    Pro-Vice ChancellorSVKMs Narsee Monjee Institute of Management Studies (NMiMS)

    (Declared as Deemed to be University by UGC)V. L. Mehta Road, Vile Parle (W)

    Mumbai, Maharashtra, Pin- Code 400056 INDIA

    Mrs. Anupamaa S ChavanLecturer

    Narsee Monjee College of Commerce & EconomicsJVPD Scheme, Vile Parle (W)

    Mumbai, Maharashtra, Pin- Code 400056 INDIA

    AbstractBackgroundMany big and large scale business organizations have started implementing green marketing in India.This paper tries to study the feasibility of practicing green marketing in case of small and medium scalemanufacturers in Mumbai city and its suburb, (India). It analyses whether these manufacturers are awareabout green products and eco-labeling, and also the difficulties in implementing green marketing.

    Objectives of the Study1. To find out whether the small and medium scale manufacturers are aware of green marketing and eco

    labels.2. To identify the reasons for obstructing the practice of green marketing in case of small and large scale

    manufacturers.3. To sugguest the measures to enhance the practice of green marketing.MethodologyThe data is collected through survey method from small and medium scale manufacturers situated inMumbai and its suburbs, India. The respondents were selected through Convenient Sampling Method asmanufacturers were hesitant to give information. Data was collected from 114 respondents.

    FindingsThus it can be summarised that Eco labelling is still not popular in small and medium scale manufacturers

    Conclusion

    From the above we can conclude that Green marketing is not going to be an easy concept. The firm has toplan and then carry out research to find out how feasible it is going to be. Green marketing has to evolvesince it is still at its infancy stage.

    Key words: Sustainable Development, Green Marketing, Green Products, Eco-labeling.

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    1.0. IntroductionMarketers play an important role in using and diverting the resources in a manner to givemaximum satisfaction to the consumers with minimum efforts and cost. Another importantaspect which a marketer needs to deal with is to anticipate the changes which can take place infuture and accordingly frame the marketing strategies. The marketers today face a challenge

    from the environment point of view. Due to global warming, green house gas emissions,pollution, and energy crisis, world is facing a severe threat of being a very difficult place to livein. Therefore, the marketers need to include a green approach in framing the marketingprograms/ strategies. With regards to this the marketers now have to go green. It means that duecare must be taken while framing the marketing plans, strategies and policies so as to prevent theenvironment and nature from any harm caused due to its operations not only today but also infuture.

    1.1. DefinitionAccording to The American Marketing Association, Green or Environmental Marketing

    consists of all activities designed to generate and facilitate any exchanges intended to satisfyhuman needs or wants, such that the satisfaction of these needs and wants occurs with minimaldetrimental impact on the natural environment.From the above definitions we can say that Green Marketing involves:

    - Manufacturing and providing products to the consumers which are of good quality and at thesame time not harmful to them even in long run.

    - Use the resources for development in such a manner which will enable the future generations toavail the resources to meet their needs leading to Sustainable Development.

    - Framing and implementing policies which will not have any detrimental effect on theenvironment i.e. at present as well in future.Thus according to theAmerican Marketing Association,Green marketing is the marketing ofproducts that are presumed to be environmentally safe. Green marketing incorporates a broadrange of activities, including product modification, changes to the production process, packagingchanges, as well as modifying advertising. Yet defining green marketing is not a simple taskwhere several meanings intersect and contradict each other. Other similar terms used areEnvironmental Marketing and Ecological Marketing.Green Marketing has gained momentum in the context of global warming and climate changeand this, in turn, has forced many companies to incorporate the principals of Green Marketing.Recently, Green Marketing has drawn the attention of government and this has forced them tointroduce environment-friendly policies. As resources are limited and human needs and wantsare unlimited, resources have to be utilized economically and in an environment friendly way.Green Marketing will play an important role in sustainable development. Every firm needs toadopt innovative methods to sustain itself in the competitive environment, thus Green marketingbecomes an important aspect which every firm will have to implement in near future, so why notstart practicing it immediately. The Government in near future is going to adopt stringentpolicies to enable sustainable development. The marketers should realize this and head ontowards Green Marketing.Indian Government has already introduced Environment Protection Act in1986 and EnvironmentAudit in 1992, the marketers have to realize that with increasing amount of global warming and

    http://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Associationhttp://en.wikipedia.org/wiki/American_Marketing_Association
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    environmental harm caused due to industrialization and economic development, the Governmentis going to apply stringent policies to save environment and is going to be even more strict withregards to the development which will cause a severe threat to the environment. Theenvironmental harm which is mainly due to green house gas emissions has caused a severe threatto the climatic conditions and the result of which can be seen in the form of droughts, scarcity of

    drinking water, floods ruining the agricultural produce etc. The Indian Government has ratifiedthe Kyoto Protocol in August 2002 and will compel companies to account for the environmentaldamage caused due to business operations, and take stringent action against those organizationswhich cause harm to the environment. The G20 leaders are trying to curb the emissions toprotect the earth and achieve development which is sustainable in nature.2.0. Carbon emissionsThe following figure shows carbon dioxide emissions, in million metric tons of carbon, ofvarious nations

    Source: Energy emission Administration

    From the above figure we can see that though India has less emission as compared to otherdeveloped nations but the increased industrialization and development will lead to increased rateof green house gas emissions. However, the U.S. and other Western nations assert that India, willaccount for most of the emissions in the coming decades, owing to rapid industrialization andeconomic growth. The most important thing a company should consider is to be green, i.e. to

    reduce the amount of toxic or other dangerous substances in their products, and to

    http://en.wikipedia.org/wiki/carbon_dioxidehttp://en.wikipedia.org/wiki/metric_tonhttp://en.wikipedia.org/wiki/carbonhttp://en.wikipedia.org/wiki/carbonhttp://en.wikipedia.org/wiki/metric_tonhttp://en.wikipedia.org/wiki/carbon_dioxide
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    manufacture/trade in environment friendly products and practice green business strategies. Thusthe marketer should go on for Green Marketing Techniques.Green Marketing refers to holistic marketing concept wherein the production, marketing,consumption and disposal of products and services happen in a manner that is less detrimental tothe environment. It is not onlycaveat emptor where the consumer should be made aware of all

    the necessary things about the product but now it iscaveat vendor whereby the marketer shouldknow all the aspects affecting the consumption of the product and also its impact on theenvironment. It is high time now for the marketers to be aware of the environmental effects oftheir marketing activities and also be prepared for various alternatives in case of scarceresources. Role of marketing in development will be appreciated only through sustainablemarketing; i.e. it meets the needs of the present without compromising the ability of futuregenerations to meet their own needs. This means that it might have to shed its present profligacythat encourages an unsustainable development path.

    3.0. Review of literatureBrahma, M. & Dande, R. (2008), The Economic Times, Mumbai, had an article which stated

    that, Green Ventures India is a subsidiary of New York based asset management firm GreenVentures International. The latter recently announced a $300 million India focused fund aimed atrenewable energy products and supporting trading in carbon credits. Founder & CEO ofEmergent Ventures India (EVI) Vinod Kala says he realised in 2004 that there is huge businesspotential in environment. He further adds that financial investors are increasingly looking atGreen Technology as profit opportunity than only a morally right thing to do, but there aredozens of entrepreneurs who have found that the capital expenditure involved in such projectsare overwhelming and funds too hesitant to invest in them. The US and the EU have asked bothIndia and China to reduce their baseline emissions, which should get implemented by 2020. Mr.Bharathwaj says that once that happens and the Government adopts more stringent policies forcurbing carbon emissions, Clean Technology ventures would assume greater importance in thecountry and as a result there would be more investment interest within the sector.Chaudhary, R., And Bhattacharya, V. (2007), in their article on Clean Development Mechanism:Strategy for Sustainability and Economic Growth published in Indian Journal for EnvironmentalProtection, state that, The Clean Development Mechanism (CDM), a co-operative mechanismestablished under the Kyoto protocol, has the potential to assist developing countries inachieving sustainable development by promoting environment friendly investment fromindustrialised country governments and businesses.The funding channeled through the CDM should assist developing countries in reaching some oftheir economic, social, environmental, and sustainable development objectives, such as cleanerair and water, improved land use, accompanied by social benefits, such as rural development,employment, and poverty alleviation and in many cases, reduced dependence on imported fossilfuels.Thus environment friendly strategies become the key factors for CDM projects.Uberoi, (2007) in his book on Environmental Managementstates that, the Government at thecentre and at the State level and their agencies should become proactive vis--vis environment.The environmental problems cannot be tackled without a sound proactive policy by theGovernment. Intervention of the Government is required on continuing basis and not on one-timelegislation and its implementation. Corporate behavior can be regulated or altered through state

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    policies. The policies of Government can shape the role of companies and that of the managersfor the larger interest of society. The corporate world in India, under new economic order ofliberalization and globalization has to increase its share of world trade and in this effort onemajor impact of rising trades would be on environment and resources. The business worldinternationally has begun to acknowledge that environment is playing an important role in all

    facets of business. A survey by Mckinsey and company revealed that: (1) 92% of CEOsbelieve that environment should be top management priority; (2) 35% CEOs believe that theircompanies have adopted strategies to anticipate impacts of environment on business.Polonsky and Alma (2008), in their edited book titled Environmental Marketing Strategies,Practice, Theory and Research, discuss the role of marketing in improving our environment. Thebook states that role of Marketing in the development process is well recognized (Kinsley 1982;Riley et al. 1983; Dholakia 1984; Carter 1986; Kotler 1986). Much of the economic activity istriggered by the marketing process that offers and stimulates consumption opportunities tosatisfy human needs and wants. However, critical role of marketing in development will beappreciated only through sustainable marketing; it meets the needs of the present withoutcompromising the ability of future generations to meet their own needs. This means that it might

    have to shed its present profligacy that encourages an unsustainable development path. Amarketing approach that aims at serving the material wants of consumers through an everincreasing volume of goods without any attempt to maximize life quality (Kotler 1988), drawstoo heavily, and too quickly, on already overdrawn environmental resources and is likely tomortgage the future. Life quality represents not only the quantity and quality of consumptiongoods and services but also the quality of the environment. Clearly, marketing has to assume amore responsible role for sustainable development. It further states that the concept of a socio-ecological product has to extend our understanding that environmental consequences (theproducts aggregate impact on everyone affected by its use) are more important determinants of

    its acceptability than either user satisfaction or corporate profitability (Cracco and Rostenne1971). The true socio-ecological product is one that becomes a consumers first choice, since itmeets his/her consumption need for a healthy and sustainable physical environment. Sustainabledevelopment can be achieved only by proactive corporate marketing and active governmentintervention.The book further gives the four mechanism of Government intervention:

    Regulation, Reformation, Promotion Participation

    and the four Rs of corporate marketing strategy i.e.

    Redirection of customer needs, Reconsumption, Reorientation of marketing mix and Reorganization that is appropriate for promoting sustainable development.

    Green marketing will play an important role in achieving sustainable development.Dutta, B. (2009, January) in his article on Green Marketing titled Sustainable Green MarketingThe New Imperative published in Marketing Mastermind states that Green Marketing involvesdeveloping good quality products which can meet consumer needs and wants by focusing on the

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    quality, performance, pricing and convenience in an environment-friendly way. It has gainedmomentum in the context of global warming and climate change and this, in turn, has forcedmany companies to incorporate the principals of Green Marketing. Firms need to explore everyopportunity to enhance their products/services in terms of quality, performance, socialresponsibility and environment-friendliness. Barkar is of the view that, Companies need to

    believe first that Green Marketing can work and make diligent efforts to make necessaryproduct improvements, which deliver performance, and are marketable and profitable.Unruh, G. And Ettenson, R. (2010) in their research article titled, Growing Green: Three smart paths to developing sustainable products. Published in Havard Business Review, is forexecutives who believe that developing green products make sense for their organisation andneed to determine the best path forward.The authors have introduced and described three broad strategies that companies can use to aligntheir green goals with their capabilities:

    Accentuate: Strategy involves playing up existing or latent green attributes in your currentportfolio.

    Acquire: Strategy involves buying someone elses green brand. Architect: Strategy involves architecting green offeringsbuilding them from scratch.These strategies emerged from 10 in depth case studies of consumer product and industrial

    companies that were moving into green space; the authors discussed with dozens of senior andmidlevel sustainability executives. The framework now plays a central role in the core executiveMBA course offerings in sustainable business strategy and in the executive education programsat Thunderbird School of Management.Thus from the above review of literature one can say that Green Marketing is gaining momentumvery rapidly.4.0. Challenges of Green MarketingImplementing Green marketing is not going to be an easy job. The firm has to face manyproblems while treading the way of Green marketing. Challenges which have to be faced are

    listed as under: Green marketing encourages green products/services, green technology, green power/energy; a

    lot of money has to be spent on R&D programmes. Thus practicing green marketing initially willbe a costly affair.

    The customers may not believe in the firms strategy of Green marketing, the firm thereforeshould ensure that they convince the customer about their green product, this can be done byimplementing Eco-labeling schemes. Eco-labeling schemes offer its approval toenvironmentally less harmless products have been very popular in Japan and Europe. In fact

    the first eco-label programme was initiated by Germany in 1978.

    Initially the profits will be very low since renewable and recyclable products and greentechnologies are more expensive. Green marketing will be successful only in long run.

    Many customers may not be willing to pay a higher price for green products which may affectthe sales of the company. The firm may give up on Green marketing concept or be forced to practice unfair means to cut

    cost to sustain in the competition and thus the entire idea of going green will be a farce.

    The firms practicing Green marketing have to strive hard in convincing the stakeholders andmany a times there may be some who simply may not believe and co-operate.

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    5.0. Green Marketing Practices in IndiaNike is the first among the shoe companies to market itself as green. It is marketing its AirJordan shoes as environment-friendly, as it has significantly reduced the usage of harmful glueadhesives.

    Kansai Nerolac Paints has been at the forefront of paint manufacturing for more than 88 yearspioneering a wide spectrum of quality paints. Kansai Nerolac has worked on removing hazardousheavy metals from their paints among this lead being the most prominent metal. KansaiNerolac does not add any lead or other such heavy metals in its manufacturing process.Dell has been one of the vendors who focus on producing green IT products. They have astrategy called "Go green with Dell" to sell these products in the market. It also comes in an eco-friendly packaging with a system recycling kit bundled along. Talking about the greencommitments of the company, Sameer Garde, Country GM, Dell India, says, "Dell is alsoactively pursuing green innovations that will be of value in 2009 from data-center efficiency tothe use of eco-friendly materials for everything from chassis design to product packaging.Eco Hotels (Ecotels) is a certification system promoted by Hospitality Valuation Services (HVS)

    International. This system is based on 5 main criteria: environmental commitment, solid wastemanagement, energy efficiency, water conservation, and employee education/communityinvolvement. In India we have Eco-hotels like Orchid, Rodas, Raintree etc. believing andpracticing green marketing.According to Harish Tiwari of Infinity Infomatic Pvt Ltd, a well known distributor, who says,

    "We don't find any difficulty in selling green products because the knowledge for these productshas increased in us as well in customer. They are ready to pay higher for these products oncethey convinced."In May 2007, IBM launched Project Big Green to help clients around the world improve the

    efficiency of IT and better optimize their data center resources. IBM has software and servicestechnologies to help businesses reduce data center energy consumption and cut energy costs bymore than 40 percent.Introduction of CNG in DelhiNew Delhi, the Capital of India, was being polluted at a very fast pace until Supreme Court ofIndia forced a change to alternative fuels. In 2002, a directive was issued to completely adoptCNG in all public transport systems to curb pollution.Gas Tech Electronic Products (Pvt) Ltd. has invented LPG Kit for motorcycles/scooters (4 strokeand 2 stroke).Can be fitted in 50 cc to 375 cc air cooled , single cylinder 2 stroke as well 4 strokevehicles with cent % fuel efficiency, with clean exhaust and zero pollution. The following figureshows the amount of pollution caused by different types of vehicles in Delhi, of which maximumpollution is caused by two wheelers. 38% of particulate matter and 61% of hydrocarbons arereleased by two wheelers alone. Thus the use of LPG kit for motorcycles/scooters will reducepollution to a great extent.

    http://en.wikipedia.org/wiki/New_Delhihttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/Supreme_Court_of_Indiahttp://en.wikipedia.org/wiki/New_Delhi
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    The MNCs and large scale organizations are now aware and are practicing environment friendly

    practices; this paper tries to find out whether the small and medium scale manufacturers arebelieving and implementing them

    6.0. Objectives of the Study1. To find out whether the small and medium scale manufacturers believe in eco-friendly

    practices.2. To find out whether the small and medium scale manufacturers are aware of eco labels.3. To investigate whether eco-labeling gives a competitive edge to the manufacturers.4. To sugguest the measures to enhance the practice of green marketing.7.0. MethodologyThis is an Empirical research on small and medium scale manufacturers situated in Mumbaisuburbs, India. The data is collected through survey method with the help of questionnaire whichconsists of Dichotomous questions, and questions relating to demographic profile. Therespondents were selected through Convenient Sampling Method as manufacturers were hesitantto give information. Data was collected from 114 respondents.

    8.0. FindingsThe data collected through questionnaire was analysed, the opinion of the manufacturers were

    taken into consideration and percentages were derived which are represented in the form of piecharts. The findings are as under:The respondents were classified under the following categories based on the type of productmanufactured and the percentage was derived, which were as under:

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    Figure 1

    Table:1The figure1 and table1 shows that 37% respondents were manufacturing garments; 12%manufactured chemical and cosmetic products; 11% manufactured electronic products, 10%manufactured stationery items; 7% manufactured Jewelry, Food products, Furniture and Fittings;

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    4% manufactured Plastic products and Steel products; remaining 1% were manufacturers ofSpectacles and Watches.

    In figure 2, we can see that 60% manufacturers manufactured standard and branded products.

    Figure 2

    In figure 3, we can see that 85% believed in adopting eco-friendly practices 14% said they donot believe since it inflated their cost, and 1% did not comment on it.

    Figure 3

    In figure 4, we can see that 45% manufactured green products, 50% said that their product wasnot a green product, 5% did not answer as they were not aware of green products.

    Figure 4 In figure 5, we can see that from the above 50% manufacturers whose products were not green,

    19% of them were planning to go in for green products, 30% said that it is not required for theirproducts, 51% had not decided therefore they did not respond.

    Figure 5

    In figure 6, we can see that 65% were aware of Eco-Label, 30% were not aware and 5% deniedto answer.

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    Figure 6

    In figure 7 we can see that only 3% are planning to get eco-labeling done for their products. 29%said they have not yet thought of eco-labeling and 68% were not ready to answer.

    Figure 7

    In figure 8 we can see that 56% believed that eco-labelling has/will increased their cost and clear44% said that it did not affect their cost.

    Figure 8

    In figure 9 we can see that 45% felt that prospect may not buy eco-friendly products which arecostlier, 55% disagreed.

    Figure 9

    In figure 10 we can see that 71% felt that eco-labels will given them competitive edge, 28%denied it and 1% did not answer.

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    Figure 10

    Figure 11 shows the consolidated graphical presentation of the responses of the variousmanufacturers

    Figure 11

    Thus it can be summarised that Eco labelling is still not popular in small and medium scalemanufacturers though 85% of the manufacturers feel and believe in adopting eco friendlypractices, only 45% are actually into manufacturing of green products, 30% have actually deniedto go in for manufacuring of green products since it increases the cost, in such cases financialassistence from the Government is required; and 5% were not ready to answer only 3% areplanning to get eco-labeling done for their products. 29% said they have not yet thought of eco-labeling and 68% were not ready to answer, 71% feel that eco-labeling will give themcompetitive edge but at the same time they need to curtail the prices.

    The following table shows the responses of the manufacturers which are given in the form ofpercentages.

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    RESPONSES YES

    (%)

    NO

    (%)

    NO ANSWER

    (%)

    STANDARD &BRANDED

    PRODUCTS

    60 40 0

    BELIEVED IN ECO-FRIENDLY

    PRACTICES

    85 14 1

    MANUFACTURED GREEN

    PRODUCTS

    45 50 5

    PLANNING TO MANU.GREEN

    PRODUCTS

    19 30 51

    AWARE OF ECO-LABELS 65 30 5

    PLANNING FOR ECO LABELLING 3 29 68

    GREEN PRODUCTS INCREASES

    PRICE

    56 44

    PROSPECTS MAY NOT BUY

    COSTLY ECO-PRODUCTS

    45 55 0

    GREEN PRODUCTS GIVE

    COMPETITIVE EDGE

    71 28 1

    Table 1

    9.0. Measures to Enhance Green MarketingFrom the above findings one can conclude that:

    There has to be a stimulus provided by the Government to encourage and support themanufacturers who are manufacturing green products by providing subsidies.

    Financial assistance should be given in the form of easy loan facility to equip formanufacturing green products.

    Tax incentives or Tax holidays will also help the small and medium scale manufacturers asgreen marketing is costly.

    Awards and recognition should be given to those who successfully practice green marketingwhich becomes a motivating factor for others to implement it.

    Social advertising to be carried out on a large scale through various medias to promoteenvironment friendly practices, to promote the consumption of green products.

    Promotion of Eco-mark or Eco-labeling has to be done to create awareness not only amongstmanufacturers but also consumers.

    10.0. ConclusionFrom the above we can conclude that Green marketing is not going to be an easy concept. Thefirm has to plan and then carry out research to find out how feasible it is going to be. Greenmarketing has to evolve since it is still at its infancy stage. Adoption of Green marketing may notbe easy in the short run, but in the long run it will definitely have a positive impact on the firm.

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    Government and Social organizations may compel all the organization to practice GreenMarketing for sustainable development. Customers too will be ready to pay premium price forgreen products. A smart marketer is one who not only convinces the consumer, but also involveshim in marketing his product. Green marketing should not be considered as just one moreapproach to marketing, but has to be pursued with much greater vigor as it has societal and

    environmental dimensions. Marketers also have the responsibility to make the stakeholdersaware about the need and the advantages of green products. The green marketers will have fullsupport of the Government, and the consumers also will not mind paying more for a cleaner andgreener environment.

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